1) The Swiss chocolatier Lderach makes scrumptious dark chocolate almond bars and they have a number...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1) The Swiss chocolatier Läderach makes scrumptious dark chocolate almond bars and they have a number of stores in New York City. Suppose the market for chocolate almond bars is in equilibrium, and the equilibrium price and quantity of a bar of chocolates is $20 and 15,000 boxes are sold in December. For some reason, in January the market price of a bar of chocolates decreases to $15 and then increases back to $20 in February. a) What could be causing this swing in price to happen in a perfectly competitive market? Explain with the help of suitable demand and supply diagrams. b) If Läderach is working in a perfectly competitive market, is there anything they can do to affect the price? 1) The Swiss chocolatier Läderach makes scrumptious dark chocolate almond bars and they have a number of stores in New York City. Suppose the market for chocolate almond bars is in equilibrium, and the equilibrium price and quantity of a bar of chocolates is $20 and 15,000 boxes are sold in December. For some reason, in January the market price of a bar of chocolates decreases to $15 and then increases back to $20 in February. a) What could be causing this swing in price to happen in a perfectly competitive market? Explain with the help of suitable demand and supply diagrams. b) If Läderach is working in a perfectly competitive market, is there anything they can do to affect the price?
Expert Answer:
Answer rating: 100% (QA)
a The swing in price in a perfectly competitive market could be caused by shifts in either the deman... View the full answer
Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
Posted Date:
Students also viewed these economics questions
-
We will be working with a company called Global Bike Inc., (GBI). Information regarding GBI follows. Company History Global Bike Inc. has a pragmatic design philosophy that comes from its deep roots...
-
Staples and Office Depot Again Propose a Merger On February 4, 2015, Staples and Office Depot announced a definitive agreement between the two companies in which Staples would acquire all of the...
-
The HaberBosch process for the production of ammonia is one of the key industrial processes in developed countries. N 2 (g) + 3 H 2 (g) 2 NH 3 (g) (a) Calculate r G for the reaction at 298 K, 800...
-
Hao Corporation had the following transactions during the current period. Mar. 2 Issued 5,000 common shares to its legal counsel in payment of a bill for $30,000 for services performed in helping the...
-
Assess your utility function in three different ways. a. Use the certainty-equivalent approach to assess your utility function for wealth over a range of $100 to $20,000. b. Use the...
-
Describe the role of an organizations personnel in compliance and antifraud efforts.
-
Your division is considering two projects. Its WACC is 10%, and the projects? after-tax cash flows (in millions of dollars) would be as follows: a. Calculate the projects? NPVs, IRRs, MIRRs, regular...
-
The half-life of a certain brand of ice cream is 180 minutes. a. Find the decay rate of the ice cream. (6 decimal places) b. How long will it take for it to decay to 60% of the original amount. c. At...
-
As you know, academic institutions rightfully seek to bring in a diverse set of students. They know that having people from diverse backgrounds in class with one another, interacting with one...
-
Discuss Contract Law, Tort law, and the elements of a contract. Comment as to whether you had any previous knowledge or whether the classes added to your existing knowledge. How do you anticipate the...
-
In The Accounting Review article "The effect of antitrust investigation on discretionary accruals: A refined test of the political-cost hypothesis", Cahan (1992) found that U.S. managers adjusted...
-
Calculating Returns and Variability (LOI) You've observed the following returns on Regina Computer's stock over the past five years: 7%, -12%, 11%, 38%, and 14%. a. What was the arithmetic average...
-
Claire passed away during 2020. At the time she passed away, she owned her home which had a cost of $100,000 and a fair market value of $160,000, and an RRSP account with a cost of $30,000 and a fair...
-
Raymond, Inc. distributes and markets athletic apparel from its corporate headquarters in Fond Du Lac, Wisconsin and it sells them to the Sound Tigers Management of Bridgeport, Connecticut. Raymond...
-
a. A tank holds 1000 liters of pure water. Brine which contains 0.05 kg of salt per liter enters the tank at the rate of 5 liters per minute. The solution is kept thoroughly mixed and is drained from...
-
The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.
-
Unquestionably, constituents of both governments and not-for-prots are no less interested in what the organization has accomplished than they are in nancial data, such as revenues and expenses. How...
-
The bylaws of the Wells City Downtown Development Authority state that of the seven members of its governing board, two must be members of the Wells City Council, one must be a member of the City...
-
In 2014, the Northwest Ballet Association (NBA), a not-for-prot performing arts organization, undertook a major capital campaign to fund a new theater, expected to cost $10 million. It was quickly...
-
Crane l uses 10 kJ of energy to lift a 50 kg box to the roof of a building. Crane 2 uses 20 kl to lift a 100 kg box the same distance. Which crane is more efficient? A. Crane 1 B. Crane 2 C. Both...
-
Christina throws a javelin into the air. As she propels it forward from rest, she does 270 J of work on it. At its highest point, its gravitational potential energy has increased by 70 J. What is the...
-
Two samples of ideal gas, sample 1 and sample 2, have the same thermal energy. Sample l has twice as many atoms as sample 2. What can we say about the temperatures of the two samples? A. T>T B. T = T...
Study smarter with the SolutionInn App